nce than the unrating
of existing improvements; if we want to encourage new buildings and new
improvements, what is really important is to ensure that new
improvements (not old ones) shall be exempt from the burden of rates."
The Committee were, however, compelled to reject this suggestion at that
time on the ground that "it would cause an unfair differentiation
between the man who had already put up buildings or improvements, and
the man who put up buildings or improvements after the passing of the
Act." But as between buildings and improvements which existed before the
war and those which come into existence under post-war conditions no
such unfairness could operate, because the increase in the cost of
building even to-day is greater than the benefit which would accrue from
the unrating of improvements. The present is therefore the unique
opportunity for bringing into force this much-needed reform in the most
effective way, free from the difficulties which had to be met in 1913.
If it had been carried out immediately after the Armistice it would, in
my opinion, have done more than anything else to solve the housing
problem, and even now it is not too late. In fact, in view of the
present unemployment it would be most opportune. Incidentally it would
soon render unnecessary the renewal of the Rent Restriction Act. I
understand that something on these lines has been introduced in New York
to meet a similar problem.
A RATE AND A TAX UPON SITE VALUES
The Committee of 1913 were obliged to turn their attention to other
suggestions. They proposed:
(_a_) That all future increases in the expenditure of each Local
Authority which had to be met out of rates should be met by a rate upon
site values instead of upon the existing assessments; and
(_b_) That existing expenditure should be met to a small extent
compulsorily, and to a larger extent at the option of the Local
Authority, in the same manner.
There is no reason why these proposals should not be brought into force
simultaneously with that relating to new buildings and improvements.
They made these proposals conditional upon a substantial increase in the
grants in aid to Local Authorities, especially in necessitous areas,
from the Imperial Exchequer; and they suggested, although they did not
definitely recommend, that a part at least of this increased grant might
be raised by means of an additional tax upon site values. This, I think,
should certainly be done, a
|